Tariff pass-through mechanism (new Sections 16.9 and 16.10) If tariffs or similar duties imposed after the Proposal Submission Deadline increase Capital Cost by more than 7.5%, the Seller can trigger a process to increase the Energy Rate,...
AI summary The new Sections 16.9 and 16.10 of the PPA introduce a tariff pass-through mechanism that allows the Seller to increase the Energy Rate if tariffs or duties increase Capital Cost by more than 7.5%, with the Independent Expert's decision being final and non-appealable, potentially leading to ratepayers absorbing these costs without input.
72% reduction in Pre-COD security (from $125,000/MW to $35,000/MW) This reduction weakens ratepayer protection during the highest-risk development period. The stated rationale is "to align the security requirements with other jurisdictions...
AI summary The reduction in Pre-COD security from $125,000/MW to $35,000/MW is argued to weaken ratepayer protection during high-risk project development. The rationale for the reduction is not substantiated with comparative jurisdictional data, and the Independent Governor recommends providing such data to ensure the amount is appropriate and does not increase ratepayer exposure.
S UMMARY OF RECOMMENDATIONS For the reasons set out above, the IG recommends that the Board direct the PA to provide, or that the PA otherwise provide in its reply, the following before the GCP PPA is approved: - An analysis of the expecte...
AI summary The IG recommends that the Board require the PA to provide analyses on ratepayer costs related to CPI indexation, early completion incentives, curtailment compensation, and jurisdictional security data before approving the GCP PPA. These analyses are intended to ensure cost-effectiveness and protect ratepayers.